Peru cuts VAT rate to 17%

Peru has announced its plan to reduce its standard VAT rate by 1% to 17% effective from 1 July 2017. The measure has already been delayed a number of times in recent years as Peru has failed to achieve matching tax collection targets. The government is targeting a VAT rate of 15% eventually. The latest target, 7.2% tax revenues as a share of GDP, will be assessed on 1 May 2017 before the VAT cut is imposed.